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Global economic uncertainty, fluctuating exchange rates and inflation are just some of the reasons why more and more people are struggling to balance their finances. Bad debt is escalating and thousands of people simply cannot pay their accounts any longer. Some even face losing everything that they have worked years to accumulate. As a last resort, individuals and businesses can obtain some relief by applying for bankruptcy in Chicago.
A chapter 7 or chapter 13 application for insolvency is not a straight forward affair. The court has to consider numerous issues. The applicant must explain why he became unable to honour his obligations. The finalization of applications can take up to six months and the applicant will have to cooperate fully or face charges. The best course of action is to appoint a lawyer to deal with the matter.
Far too many people think that insolvency is an easy and quick route out of financial obligations. This is most certainly not the case. The court will apply a means tests and if it is of the opinion that the applicant can pay the claimants, albeit at a reduced rate, it will refuse to grant the order. It is up to the applicant to convince the court that he cannot honour his obligations and that it is unlikelihood that his situation will improve.
The first step taken by the court will be to appoint a trustee. Trustees has broad powers and their main task is to ensure that the creditors are paid. To this end they normally liquidate the assets of the applicant by selling them on open auction. If the applicant is a business, he may decide to sell the business as a going concern or he may simply strip the business of its assets and close the concern down.
Applicants often do not know that they will remain responsible for certain financial obligations. Debts that are secured must still be honoured. Child support payments must still be made and taxes, even back taxes, are still due. The trustee will leave the applicant with some furniture, clothes, tools and in some cases his vehicle. The rest will be forfeit.
Nobody should attempt an insolvency application before obtaining advice from an experienced and reputable attorney. The long term consequences of insolvency can be devastating. Once an order is granted by the court the applicant will find it very difficult to obtain finance for at least ten years. He may be forced to make drastic life style changes and these changes will also be applicable to his family.
Any reputable lawyer will first try every possible avenue before filing for insolvency. Many creditors are willing to accept lower payments over extended pay back periods because they will at least be paid. The lawyer can even approach the court to enforce such arrangements. He can also help his client to draw up a realistic budget that will enable him to retain at least some quality of life whilst paying his debts.
Far too many people end up in the insolvency court because they neglected to take action when they first realized that they are in trouble. It is imperative to get professional help immediately. In most cases a complete financial disaster can be averted but decisive action needs to be taken and the applicant will have to impose strict financial discipline.
A chapter 7 or chapter 13 application for insolvency is not a straight forward affair. The court has to consider numerous issues. The applicant must explain why he became unable to honour his obligations. The finalization of applications can take up to six months and the applicant will have to cooperate fully or face charges. The best course of action is to appoint a lawyer to deal with the matter.
Far too many people think that insolvency is an easy and quick route out of financial obligations. This is most certainly not the case. The court will apply a means tests and if it is of the opinion that the applicant can pay the claimants, albeit at a reduced rate, it will refuse to grant the order. It is up to the applicant to convince the court that he cannot honour his obligations and that it is unlikelihood that his situation will improve.
The first step taken by the court will be to appoint a trustee. Trustees has broad powers and their main task is to ensure that the creditors are paid. To this end they normally liquidate the assets of the applicant by selling them on open auction. If the applicant is a business, he may decide to sell the business as a going concern or he may simply strip the business of its assets and close the concern down.
Applicants often do not know that they will remain responsible for certain financial obligations. Debts that are secured must still be honoured. Child support payments must still be made and taxes, even back taxes, are still due. The trustee will leave the applicant with some furniture, clothes, tools and in some cases his vehicle. The rest will be forfeit.
Nobody should attempt an insolvency application before obtaining advice from an experienced and reputable attorney. The long term consequences of insolvency can be devastating. Once an order is granted by the court the applicant will find it very difficult to obtain finance for at least ten years. He may be forced to make drastic life style changes and these changes will also be applicable to his family.
Any reputable lawyer will first try every possible avenue before filing for insolvency. Many creditors are willing to accept lower payments over extended pay back periods because they will at least be paid. The lawyer can even approach the court to enforce such arrangements. He can also help his client to draw up a realistic budget that will enable him to retain at least some quality of life whilst paying his debts.
Far too many people end up in the insolvency court because they neglected to take action when they first realized that they are in trouble. It is imperative to get professional help immediately. In most cases a complete financial disaster can be averted but decisive action needs to be taken and the applicant will have to impose strict financial discipline.
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